Dozens of families across Greater Manchester face losing tens of thousands of pounds each after a sale-and-rent-back housing company collapsed. Tenants of UK Housing Alliance North West have been left devastated after the business was put into administration owing £38m to the bank.

UK Housing Alliance bought the families’ homes and handed over 70 per cent of the value at the time of purchase.

The remaining 30 per cent was due to be paid to each tenant after they had rented their property back from the company for 10 years.

The families now look likely to lose cash they had banked on for retirement and for their children.

The administrators will now try and find new buyers for the properties and, when they do, the families will still be able to continue living in their homes under their 10-year tenancy agreements – as long as they continue to pay rent.

Margaret and David Bateson sold their two-up, two-down terrace in Great Lever to UK Housing Alliance for £75,000 in 2007.

They could not afford repairs on the home so wanted to sell it and rent it back, so their new landlord would foot the bill for the work.

The couple also wanted to free up £21,000 equity for when they retired.

Now it looks like they will never receive the money.

Devastated

Margaret, who has lived in the house for 33 years, said: “We’re devastated. It has all turned sour.

“We were relying on that money for a nest-egg in our retirement. I don’t think we’ll get any of it.

“We’re gutted. We don’t know what’s going to happen.”

More than 375 families across the north west are owed a total of £13m.

Manchester firm Berg Legal is representing 150 of the households affected by the collapse.

Berg’s property litigation partner Joy Barnett said: “It is an uncertain time for the tenants. Each outcome depends on the specific contractual arrangements and the value realised on the sale of their properties.

“At the moment it seems unlikely they will receive their 30pc, whether from the company or any other purchaser.

“We can help them by ensuring the administrators are taking the proper steps to obtain the maximum value for their properties, and ensuring they have continued rights to live in their homes.”

A spokesman for administrators Baker Tilly said: “The administration is in a very early stage and so it is too early to predict the outcome. We’re acting as officers of the court with a duty to act in the interests of all creditors to the business in administration.”